The Office for Students (OfS) reveals that financial pressures continue to mount across UK universities, with more than 40% now operating in deficit. The new report, which examines the sector’s fiscal outlook for 2024–25, outlines serious challenges that threaten the long-term viability of institutions.

The National Centre for Universities and Business (NCUB) has previously raised concerns about the risks now confirmed in the OfS report. NCUB is calling for urgent action to develop a sustainable funding solution to protect the future of the sector.

Dr Joe Marshall, Chief Executive of NCUB, commented:

“Universities play a pivotal role in driving economic growth by connecting new knowledge and ideas with businesses that can turn them into new products and services. They ensure graduates are equipped with the skills to power innovation needed to drive economic growth. These outcomes require deliberate investment in time, relationships and infrastructure – they don’t happen by accident.”

Recent NCUB analysis of university-business collaboration data shows a significant drop in the value of interactions, particularly with SMEs. Faced with mounting financial pressures, universities may be forced to reduce collaboration activities such as consultancy and contract research – precisely the types of partnerships that underpin the UK’s ambitions as a global innovation leader.

Dr Marshall added:

“Forcing universities into short-term cost-cutting measures, as highlighted by the OfS, without regard for their broader economic contribution, risks irreparably damaging their ability to support national growth. This would be a grave mistake for any government committed to economic progress.”